Seniors looking for affordability land in Kent County

Virginia and Jack Cotterman walk outside their home in Longacre Village in Camden. Virginia and Jack moved to Kent County from Texas after looking at places up and down the eastern seaboard. They chose Delaware because of the lower property taxes and because they wanted to be close to their three children in Connecticut.(Photo: Jason Minto, The News Journal)Buy Photo

When Jack and Virginia Cotterman made the decision to move closer to their kids in Connecticut, they made a mental checklist of what they needed in their new location.

Kent County met their needs.

Low taxes? Check.

Affordable housing? Check.

Central location on the eastern seaboard? Check.

Before moving to Dover's Longacre Village more than a year ago, the Cottermans were living out their retirement years in Texas, which meant a cross-country trip to see their kids and grandchildren on the East Coast.

When the trips became fewer and farther between, the retired couple decided to look for an area of the country that would afford them easy access to their family without breaking the bank.

"We checked everywhere, like Massachusetts, New York, Pennsylvania and New Jersey before we decided to move here," Virginia said. "We used to see our children and grandchildren once a year, but now we get to see them on holidays and whenever we want to because it's only a six-hour drive."

The Cottermans' story isn't unlike those of a growing number of retirees moving to Kent County. State data shows that from 2010-2016, the population of individuals ages 65 and older in Kent County increased by 30.7 percent and continues to climb.

The number of retirees and those approaching retirement age (55-64) are the only age groups on the rise in Kent County. In 2016, there were 25,700 people 65 and older, while 21,000 people in the 55-64 age group called Kent County home.

Kent County data shows a steady decrease or no change in other age groups.

Kathy Sperl-Bell, broker and co-owner of Active Adults Realty in Lewes, has based much of her business on finding homes for retirees in Delaware. She said the 60+ group is eyeing the state more and more.

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Virginia and Jack Cotterman look at photos from some of their family vacations over the years at their home in Camden. They chose Delaware because of the lower property taxes and because they wanted to be close to three children and grandkids living in Connecticut.(Photo: Jason Minto, The News Journal)

"Even though Delaware flies below the radar in many studies, it is popping up with at least a mention when the topic is Baby Boomers and retirees," she said.

With less than a million people in the entire state, Sperl-Bell said Delaware is attracting relocating retirees from surrounding states and the Northeast. A recent nationwide study ranks Delaware 10th in the nation with a net annual gain of 2,448 persons age 60 and older between 2011 and 2015.

The bottom 10 states include New York (#51), New Jersey (#49), Pennsylvania (#48), and Connecticut (#43).

"A huge percentage of our relocating buyer clients are coming from those four states with more coming from Virginia (#41) and Maryland (#40)," Sperl-Bell said. "Obviously, many people leaving these states are moving to the top few, especially Florida, South Carolina and North Carolina, but a good percentage of them are moving to Delaware for very good reasons."

Lower taxes is one of the main drivers.

"Houses aren't always cheap here, but the taxes are and that is attractive to retirees," she said. "Delaware and Kent County are no longer a secret for folks in the Mid-Atlantic. There is culture, the capital and the beaches are just an hour away."

While Sperl-Bell and her husband, Bill (co-owner of Active Adults Realty), find houses up and down the state for those relocating to Delaware, their focus has turned to Kent and Sussex counties more recently.

They have seen a steady increase of retirees choosing to spend their retirement on homes in Kent County. Sperl-Bell said that in Dover's Longacre Valley alone, her company has sold 25 properties since 2011.

A growing trend

The latest data shows a per capita personal income of $38,498 in 2016 in Kent County, which reflected an increase of 2.6 percent over 2015, according to the U.S. Department of Commerce's Bureau of Economic Analysis

While the county ranked third in the state and the personal income was just 80 percent of the state average, Kent County outgained Delaware's other two counties in the percentage of increase (2.2 percent in Sussex, 1.3 percent in New Castle, 1.7 percent overall in the state).

For George Sharpley, with the Delaware Department of Labor, those numbers signal a movement of retirees to Kent County, especially when you factor in that transfer payments – social security and government payments that transferred from working people to retired people – make up a large percentage of the per capita income.

"Transfer payments increased by 3.9 percent in Kent County in 2016 and now make up more than a quarter of all income (25.6 percent) in the county," he said.

In Sussex County, which is a haven for retirees, transfer payments mirror that of Kent County at 25.5 percent of personal income.

"The cost of living is less in Kent County, so people who can't afford beach homes are retiring to Kent County," Sharpley said.

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Virginia and Jack Cotterman moved to Kent County from Texas after looking at places up and down the Eastern Seaboard. They chose Delaware because of the lower property taxes, affordable housing and central location.(Photo: Jason Minto, The News Journal)

The Cottermans fit into that category. Jack and Virginia said they didn't even consider retiring to the beach.

They noted housing costs and taxes are higher there, but the biggest reason they chose not to live in the southern part of the state was the added time it would take to drive to Connecticut.

"I actually wanted to go up the other way, but we just didn’t find anything closer to the border, so we gravitated here," Virginia said. "Kent County has been good to us. We really like it here."

Others are following suit.

In Kent County, there are eight 55+ housing developments, while Sussex County has seven.

The Cottermans chose Longacre Village just outside the Camden city limits because of its location. The 300-home development is one of only two of its kind in Dover. The other community is Nobles Pond and is currently being built now. When finished, it will have 800 55+ homes.

There are three 55+ developments in Smyrna, two in Magnolia and one in Felton.

"We looked at houses in Smyrna and Georgetown, but we fell in love with this place," Virginia said. "We can go to the beach if we want to or we can go the other way if we want to. Dover and Kent County have everything we need."

Other areas of growth

According to 2018 Kent County Comprehensive Plan data, the Smyrna area is a popular destination for retirees moving into a number of age-restricted communities in the area.

Currently, there are three 55+ developments in Smyrna, with others in the planning stages.

Sperl-Bell believes Milford is another community that will see an influx of retirees because healthcare concerns are near the top of the list for seniors when looking for a community in which to relocate. She believes Milford's new 168-bed hospital will be a draw.

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View of Milford Memorial Hospital. The hospital property is being sold to Nationwide Healthcare Services.(Photo: Jason Minto, The News Journal)

The small inland city is less than an hour north of the popular beach towns and has living costs just 5.2 percent above the national average, according to Sperling’s Best Places.

"Growth in the next 10 years will be in Milford and Dover and that's going to be a game-changer," Sperl-Bell said. "I really think we are going to see a resurgence in these areas.

"People want a sense of community and they don't want to move into older homes. They can get everything they are looking for in Kent County."

Reach Jerry Smith at jsmith17@delawareonline.com. Follow him on Twitter at @JerrySmithTNJ.